More red ink: US budget deficit through July hit $2.54T

By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) — The U.S. budget deficit hit $2.54 trillion for the first 10 months of this budget year, fed by spending to support the country after the pandemic-induced recession. The figures keep the deficit on track to be second largest annual shortfall in U.S. history, behind only the most recent fiscal year that ended Sept. 30. Still, the Treasury Department reported Wednesday that the deficit through July is 9.5% lower than the same period a year ago. That reflected improving tax collections as the economy recovers, and the winding down of many of the emergency support programs enacted after the pandemic struck in March of last year.